One way to greatly affect your budget in the positive, be it buying groceries or paying for cable, taking stock of your family’s needs and then attacking each area in turn can go a long way to reducing the amount you pay for everything.
Step 1: Take Stock
Make a list of everyone’s needs. Ask each family member for their wish list. For example, my four-year-old’s list would probably include chocolate ice cream, my ten-year-old might include Pokeman cards, and my six-year-old wants a new skating dress. My husband might list lunch out once a week with his best friend and provision for a new truck down the road.
Combine the lists together into one master list.
Step 2: Evaluate the List
If your family includes kids, such as mine does, you’ll want to review the list and weed out anything that isn’t practical or in line with your family values, for example, a new expensive toy or inappropriate video game.
This is also a good time to separate out the needs and the wants.
Step 3: Create a Plan
Now that you have your list, it is time to attack it. Brainstorm different ways to get the things on your list for discounted prices. For example, in the case of the chocolate ice cream, I could start clipping coupons or opt for the store brand. For the skating dress, I contacted a bunch of people and put the word out and wound up with two slightly used dresses for a third of the cost for one new one. I might also have opted to borrow one.
For larger purchases, you can develop a plan for saving for the items. Break down the cost by the time frame of your goal, and then figure out exactly how much money you will need to save per week or month. By doing this, you can pay cash and won’t go into debt or have to pay interest.